Who will you be when you retire? Retirement is about having control of your time. Maybe retirement means earning money doing something you love, at a pace that is comfortable for you. Maybe it is helping a charitable organization or volunteering your time for activities you care about. Spending time with family and friends and sprinkling in some travel appeals to many. Whatever you aspire to be in the next phase of life, a sound financial plan for getting there will help ensure your ability to choose. There are some key pieces of the puzzle that will help ensure retirement success. The earlier you start building a retirement nest egg the easier it will be.<\/p>\n
I have identified five primary preparation stages for planning. In the last newsletter we looked at preparing for retirement in the \u201cBusy Stage\u201d of your adult life. In this stage, it is important to decrease debt, take advantage of deferred tax retirement savings plans, review college funding and insurance needs.<\/p>\n
This quarter, we are addressing the \u201cEarly Retirement Stage\u201d.<\/p>\n
Early Retirement Stage<\/p>\n
The \u201cEarly Retirement Stage\u201d is the time we all prepare for and dream about. This is the time shortly after retiring when we explore life without the confines of work commitments. Ideally, we are in relatively good health and able to enjoy an active lifestyle.<\/p>\n
In order to fully enjoy this time of life, it is important to understand where we are financially and review a monthly budget. It will likely take a few months to really understand what the budget looks like. There may be some required expenses that were not considered. And living an active lifestyle can be expensive. Rather than spending time on work to bring money in, time is now spent on activities that cost money.<\/p>\n
Debt<\/strong>. If there is still some debt, it is time to seek ways to eliminate it. The impact of debt on the monthly cash flow must be reviewed carefully. Oftentimes, a mortgage or other debt is the largest monthly expense.<\/p>\n Social Security<\/strong>. For most retirees, Social Security may be a major source of income. Maximizing this benefit is important. Many retirees want to claim Social Security as soon as possible; waiting until age 70, however, is typically the most beneficial option.<\/p>\n \u2022 Defer benefits until age 70. The monthly benefit typically increases each year the benefit is deferred. The monthly comparison may not seem like much. However, over a retiree\u2019s lifetime it may amount to well over $100,000 that is given up by filing for Social Security early.<\/p>\n \u2022 When to file early. Poor health is a common reason some retirees file for benefits early. If you have received a diagnosis that may limit your life span in retirement, it may be a good idea to go ahead and file. \u2022 Emergency Fund. A stable savings account to help weather any storms or take care of unexpected expenses should always be available. Making sure this fund is readily accessible is key.<\/p>\n \u2022 Tax-Deferred Savings. Typically, any funds that are withdrawn from tax-deferred savings other than Roth accounts\u2014such as employer retirement plans, IRAs or annuities\u2014are taxed at your income tax rate. Waiting until it is required to tap into these income sources may be beneficial. $1,000 withdrawn from a tax-deferred savings account may only be $700 in actual spending money (at a 30% income tax rate). Funds from Roth accounts typically may be withdrawn without tax liability.<\/p>\n \u2022 Taxable Investment Accounts. As a diversified investment option to retirement plans, a taxable investment account can offer flexibility, accessibility and opportunity. Distributions from taxable accounts are currently subject to lower rate capital gains taxes on any earnings. This can be very beneficial when considering income flows in retirement.<\/p>\n Insurance<\/strong>. With a family, insurance is a vital piece of financial security. As we enter retirement, a fresh assessment of insurance needs should be reviewed. If cash flow is tight, it may be worth considering a step back in life insurance coverage as family beneficiaries may not need the benefits as much as they did in the past. Again, each situation must be carefully reviewed.<\/p>\n Estate Planning.<\/strong> At this stage estate planning is vital. Meeting with an estate planning attorney to make sure your affairs are in order is an important way to take the burden off your loved ones. A good estate plan will take care of financial considerations as well as put health care directives in order.<\/p>\n Schenkelberg Investments is here to help you put the pieces together. Please call or email to discuss options 402.658.2152, jj@schenkelberg.investments.<\/p>\n","protected":false},"excerpt":{"rendered":" Who will you be when you retire? Retirement is about having control of your time. Maybe retirement means earning money doing something you love, at a pace that is comfortable for you. Maybe it is helping a charitable organization or volunteering your time for activities you care about. Spending time with family and friends and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[122],"tags":[],"class_list":["post-6180","post","type-post","status-publish","format-standard","hentry","category-financial-planning"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1BG","jetpack-related-posts":[{"id":6141,"url":"https:\/\/schenkelberg.investments\/?p=6141","url_meta":{"origin":6180,"position":0},"title":"Retirement \u2013 Dreams to Reality – Pre-Retirement","author":"J.J. Schenkelberg, CFA","date":"October 23, 2017","format":false,"excerpt":"Who will you be when you retire? Retirement is about having control of your time. Maybe retirement means earning money doing something you love, at a pace that is comfortable for you. Maybe it is helping a charitable organization or volunteering your time for activities you care about. Spending time\u2026","rel":"","context":"In "Financial Planning"","block_context":{"text":"Financial Planning","link":"https:\/\/schenkelberg.investments\/?cat=122"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6192,"url":"https:\/\/schenkelberg.investments\/?p=6192","url_meta":{"origin":6180,"position":1},"title":"Retirement – Late Retirement Stage","author":"J.J. Schenkelberg, CFA","date":"April 6, 2018","format":false,"excerpt":"Who will you be when you retire? Retirement is about having control of your time. Maybe retirement means earning money doing something you love, at a pace that is comfortable for you. Maybe it is helping a charitable organization or volunteering your time for activities you care about. Spending time\u2026","rel":"","context":"In "Financial Planning"","block_context":{"text":"Financial Planning","link":"https:\/\/schenkelberg.investments\/?cat=122"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6148,"url":"https:\/\/schenkelberg.investments\/?p=6148","url_meta":{"origin":6180,"position":2},"title":"Retirement – Dreams to Reality – Busy Stage","author":"J.J. Schenkelberg, CFA","date":"July 8, 2017","format":false,"excerpt":"Who will you be when you retire? Retirement is about having control of your time. Maybe it means earning money doing something you love, at a pace that is comfortable for you. Maybe it is helping a charitable organization, or volunteering your time for activities you care about. Spending time\u2026","rel":"","context":"In "Financial Planning"","block_context":{"text":"Financial Planning","link":"https:\/\/schenkelberg.investments\/?cat=122"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6155,"url":"https:\/\/schenkelberg.investments\/?p=6155","url_meta":{"origin":6180,"position":3},"title":"Retirement – Dreams to Reality – Early Stage","author":"J.J. Schenkelberg, CFA","date":"April 8, 2017","format":false,"excerpt":"Retirement, that time in the future that remains a foggy dream for many. We know we want to get there. And, in many cases, the sooner the better. If you won millions of dollars in the lottery today what would you want to do tomorrow? \u201cRetire!\u201d would seem to be\u2026","rel":"","context":"In "Financial Planning"","block_context":{"text":"Financial Planning","link":"https:\/\/schenkelberg.investments\/?cat=122"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6489,"url":"https:\/\/schenkelberg.investments\/?p=6489","url_meta":{"origin":6180,"position":4},"title":"Retirement Plan Options for Small Business Owners","author":"J.J. Schenkelberg, CFA","date":"October 7, 2019","format":false,"excerpt":"When it comes to retirement plans, we often think of a 401(k) or 403(b), depending on what type of workplace we are accustomed to. These options work very well for large business, but there are quite a few different options to be explored for smaller business owners. This can be\u2026","rel":"","context":"In "Financial Planning"","block_context":{"text":"Financial Planning","link":"https:\/\/schenkelberg.investments\/?cat=122"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2019\/10\/image.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2019\/10\/image.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2019\/10\/image.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":6913,"url":"https:\/\/schenkelberg.investments\/?p=6913","url_meta":{"origin":6180,"position":5},"title":"Roth IRA Conversion Opportunities","author":"J.J. Schenkelberg, CFA","date":"January 5, 2026","format":false,"excerpt":"A Roth IRA (Individual Retirement Account) conversion involves moving funds from a traditional IRA or other eligible retirement account into a Roth IRA. Income taxes must be paid at the time of conversion, but once the funds are in the Roth IRA they may grow and be withdrawn tax free\u2026","rel":"","context":"In "Financial Planning"","block_context":{"text":"Financial Planning","link":"https:\/\/schenkelberg.investments\/?cat=122"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2026\/01\/image.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2026\/01\/image.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2026\/01\/image.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2026\/01\/image.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2026\/01\/image.png?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6180"}],"version-history":[{"count":1,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6180\/revisions"}],"predecessor-version":[{"id":6181,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=\/wp\/v2\/posts\/6180\/revisions\/6181"}],"wp:attachment":[{"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schenkelberg.investments\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nSavings and Income. Savings accounts now turn into income sources. Determining how and when to tap into savings accounts for retirement income is a key benefit of a financial advisor. Taxes and fees can significantly alter the actual cash flow from different accounts. A CPA will be instrumental in calculating the exact tax implications for each situation.<\/p>\n